Conservation Property Easement in South Carolina

Conservation easements are legal agreements that permanently protect the “conservation values” of a property—riparian area, habitat and unique ecosystems, farmland and prime soils, and scenic “viewsheds” from public areas such as adjoining roads.

Conservation easements can be tailored to meet the needs of the landowner and their heirs. Many conservation easements allow future development in designated areas. Conservation easements are an excellent estate planning tool for families with real estate assets. Many conservation easement donations qualify for federal income tax deductions.

The Spartanburg Area Conservancy (SPACE) is the local nonprofit land conservancy serving the Spartanburg area, as well as Union and Cherokee counties.

The following example is for discussion purposes only. Landowners interested in conservation options for their property should call SPACE at 864-948-0000 to schedule a free consultation. Or visit our website at www.spartanburgconservation.org for more information.

PROPERTY
Our example tract is a typical 250-acre, predominately pine plantation with hardwoods, along a stream and creek bottoms.

RESERVED RIGHTS
1. Owner is opting to reserve three home sites.
2. The plan allows for maintaining a sustainable forest, while harvesting pine timber only under a managed forestry plan.

VALUE OF LAND
For this particular example, the 250-acre tract is appraised for $2,500 per acre or $625,000.

VALUE OF THE EASEMENT
Conservation easement values typically range from 30% to 70%, depending upon the reserved rights. In this example, we will use a reduction of 50%, with the resulting easement value equaling $312,500.

OWNER’S INCOME
This owner’s adjusted gross income is $250,000.

FEDERAL TAX INCENTIVE
Conservation easement federal income tax incentives are 30% of adjusted gross income (AGI) in any one tax year. The donor has up to six years—the year of the donation plus an additional five years—to use the available deductions. In this case, the owner could take a deduction of $75,000 for four years, and the remaining $12,500 would be taken the fifth year. Total deductions would equal $312,500.

SOUTH CAROLINA STATE TAX INCENTIVE
The South Carolina state tax is $250 per acre, up to a maximum of $52,500. Our example owner would qualify for the maximum allowance. Depending upon the state tax liability, the owner has the option of spreading this credit over several years or using it all in one year. The credit could also be sold on the open market for an estimated 75 cents on the dollar, if no state tax liability exists.